New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-16
PRICE THREE CENTS.
kRULING ON THE CLAUSE.
LONG AND SHORT HAUL DECISION.
ELABORATE ANNOUNCEMENT FROM THE
INTERSTATE COMMISSION.

NENT REIIEF-TH~Y MUST SETTLE THE VExED
QUESTION OF DIsCRIM >ATION AT THE RISK
OF VIOLATING THE LAw-THE CoMMIs-
SION PREsENTs IT'S VIEWS OF THE
MEANING OF THE STATUTE
FOR THEIR BENEFIT,
HOWEVER
WASHINGTON, June 15.-1he Interstate Commits.
sion rendered tonight its long expected decision
upon the fourth section of the Interstate Commerce
act which prohibits greater charge for the trans
poration OF passengers and property over shorter
than over longer distance in the same direction
under substantially similar circumstances and con-
dltions. 1he decision is made upon the petition
of the Louisville and Nashville and other railroad
companies which were among the first to apply for
relief from the operation of the fourth section of
the law. The decision is long, comprising more
than fifteen thousand words but its most important
feature is the announcement that the Commission
after mature consideration is satisfied that tho
statute does not require it 10 prescribe in every
instance the exccptio nal and grant its order
Tor relief before the carrier is at liberty in its
tariiis 10 depart from the general rule. Tho
carrier must judge for itself what are the sub
stantially similar circumstances and conditions
which preclude the special rate, rebate or draw
back which is made unlawful by the second
tlOn since tribunal is empowered to Judge for it
until after the carrier has acted and then only for
the purpose Of determining whether it's action
stitutes violation OF law. The carrier judges
on peril of consequences; but the special rate,
rebate or drawback which it grants is not Illegal
when IL turns out that the circumstances and con-
ditlons were not such as TO forbid IL ; and as
congress clearly intended this, it must also when
using the same words in the fourth section have
intended that the carrier whose privilege in
The same way limited by them, should in the same
way act upon It's Judgment ot the limiting clrcunl-
stances and Conditions.
Ihe Commission, therefore, will not undertake
10 decide in advance what constitutes or what
does not constitute discrimination under substan
TALLY similar circumstances asd conditions but
Will leave railroad companies in fX,ns their
tariffs to act upon their own judgment and at
their risk, subject TO Accountability before tho
Commission and the courts in cases where complaint
Is made by interested parties OF violation Of the
law, For the guidance, however, OF railroad
companies, the Commission in its decision has
considered at great length nearly all the questions
raised under the fourth section of the law, and has
reached conclusions which are summarized as
follows:
Frsthat the prohibition in the fourth section against
shorter than for longer distance owe.
the line n the same The shorter being @
which the circumstances and conditns are suosan
seeond~That the phrase substantially similar cr
aud conditions" in the ionrth section used m
prohibition the fourth section carriers are
Sy or Sssmiar,ty OF the circumstances
forbid permit greater charge for shorter
and N not aa but i
S%tGry %h,Ser error &a Ss hs, es%e
icsrSs si SSHa .scon Of The act SseS
70 any sPonS @ the ss aud
substantially dissimilar . -. - ,,.,.~
charger. to 5s Ss %
9g ansT & apply m e vs" DC in
Fifth That the existence Of actual compeon' when 81
The '1 s s4G ns% sSnSSs or s
shorter haul over The zane line " me S,e aeetos 'n'
GJ When wan carriers by water which
are not s nss s TO ns r. @ eeSn other railroads
which subject TO the provisions OF The statute
which subject to the satnte when strict apiic
the general OF the statute would be destructive
sDthThe Commits further decides greater
charge in the aggregate is Of
the like kind OF property for shorter an @r
the shorter being included n The Ghgrr ast@ee & % nSs
ecie such charge way or local trac and 'hae
which gven the more fayo rates Is not has thar
the short expensive to tho carrier unless
make IL eNcrptionaly
the long haul r.ic exceptionally neSpenssy *
the difference being extraordinary aud 'uscepuole o asas
or that the lesser charge longer haul has for It's
the announcement OF manufactures or some "ner
Nr thai II is dc,igne to buid mp orrae
Nor @ e esrgs on The lonseT na@ Is rs scsg
indas,ria esabslments hive been bG,t mp r,.s q,
The long haul traffic VIII only bear certain rates
OF other usfh.
TIE KNoTTY QUESTION OF COMPETITION
In considering the cases governed by the Ii tn
oonclusIon IN the above absIracr. the Comm ission
takes mp first competition with carriers oy "ater'
and says:
was fairly before that instances exist and may
be found along OF petitioners lines Ia The states
KENTUCKY fenntssee Ge,rs. Alabama Mississippi & as
abroad below what 4 possible to make te@ & At
efficiency The only Question tIst larry ns srses
REGARD S IL Wheeler Rss ,4s the Se.s Of + e a w
railroads compete with wasr avs s'bss S
accept such rates TO compel .ae r9gd 10 90,
wonid oas classes Of bust.
now Of public importance either be alosed
SnSOose. S or they must leave vssscowners
o. the business wihOa vou,s lie sars ersSk
The question here limitation Of eompet,ien
Gi Congress intend that Of on %isas
m some cases %Se 9 0%, re ,sr short haul
though might be oyer The same ine IN ts iens 'rec
The Commission then reviews ut some lengta the
history of the proceedings in Congress which re.
suited in the adoption OF the fourlh sectioh as 10
now stands, and comes to this conclusioh'
stood existence OF competition was INTENDED 'os
S%ss. % m 'nS anG a IN nsy REJECTING the long
haul clause Of House BILL which prescribed an naes1Ie
Substance the section hd passed the ssna,e ea
charging for n.se,a s sHrsr sas
than for The Longer ,r s.snoons IN certain cases n among
OILERS in ana eoa on o sps ams
exceptions might necessity II the cohp,oh was 70
continue. And water competition was beyond uon,' ~.
c,,iiv IN vew Every railroad company ought Nhen
tariffs that the bufen upon
reights shall proportional on all portions oi M s anu
h view 10 sufficient meet all the Item. OF cur
ren nense Including keeping the road Oud-
ngs and ami OF returning ar proh 10 owns
Rnt n AZ olylous that when there ~ wafer
competition leading points may Oe mossos 20 pso ~,
some portion afhc its equal proportion OF tne
whole s IL IL can then made 10 anything to"art
the cost above the taking OF II would aid TO ls
the ought In general 10 be forced
n since the surplus under such circumstances "ou" U"
profit
With regard TO the second point Of Conclusion
Five relating to competition with other railroads.
not subject to the law, the Commission says
The question whether railroad a mi, aw can
prssent case dssinilai snu ~ ae ~
within the meaning am"etian with Canadian roads may,
ia present OF dissmla a. ns
20 such roads compete with ROADS ~ Io